Bajaj V: ‘Heroic’ Bike and Unheroic Choices of Marketing?

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Bajaj V: ‘Heroic’ Bike and Unheroic Choices of Marketing?

On January 26th 2016, Bajaj Auto Ltd. (Bajaj) released a teaser film of Bajaj V bike, keeping in mind the patriotic enthusiasm in the country on the occasion of the 67th Republic Day. Bajaj procured metric tons of scrapped metal from INS Vikrant – Asia’s and India’s first aircraft carrier, which was used for manufacturing the bike. On the next day January 27th 2016, after launching its video film, IB Commercials Pvt. Ltd. (IB Commercials) alleged that Bajaj had neither obtained an NOC from them nor had acquired the rights of using the dismantling video footage for promoting its bike.

Bajaj as a family played a strong role in India’s independence struggle and made a mark for itself in the country since Bajaj Auto’s inception. Though the idea of taking a patriotic route to manufacture bikes out of the scrap was considered as a good marketing idea, what surprised the automobile industry analysts was commercializing the scrap bought. Critics remarked that using scrap material Bajaj intended to make profits of millions of rupees. Was it unethical for Bajaj to use the dismantling video footage as a part of its advertisement to sell its ‘patriotic’ bikes? Analysts opined that the government should establish ethical and legal boundaries in marketing the bike. Can such a one-off controversy and the negative publicity play a huge role in Bajaj V’s make or break scenario? Would the negative impact have a possible dent in Bajaj’s production and its stable of products?

Indian Automobile Industry: The Two-Wheeler Segment

The Indian automobile industry is one of the largest in the world and accounts for 7.1% of India’s Gross Domestic Product (GDP). The industry is divided into several segments namely, the two-wheelers segment comprising motorcycles, geared/ungeared scooters, electric-scooters and mopeds, the three-wheelers segment comprising commercial vehicles (light, medium and heavy), passenger cars, Utility Vehicles (UVs) and tractors.....

Bajaj Auto: One of the Leading Players

Headquartered in Pune and founded in the year 1945, Bajaj Auto Limited is an Indian two-wheeler and three-wheeler company, manufacturing and selling motorcycles, scooters and auto rickshaws. The Bajaj Group is listed amongst the top 10 business houses in India. It is the only auto company in Forbes list of World’s Top 100 Most Innovative Companies of 2014...........

Bajaj V: Quest to Keep INS Vikrant Alive

On January 26th 2016, Bajaj Auto released a teaser film of Bajaj V bike, in sync with 67th Republic Day celebrations. The video, backed by A.R Rahman’s background score –Maa Tujhe Saalam, had a crisp information about INS Vikrant and its role in India’s defense system. Bajaj procured only some portion of the INS Vikrant metal, and hence the company stated that the production of the V bike will continue only for............

INS Vikrant: Remnant or Resurgent?

On October 14th 1943, HMS Hercules, a majestic-class light fleet aircraft carrier was built. It was a 192-metre-long gigantic vessel, weighing 20,000 tonnes, a draught of 24 feet and could sail at a speed of 43 km per hour with a range of 22,000 km. Commissioned in 1945 for the British Royal Navy and bought by India in 1957 the vessel was renamed as INS Vikrant. It was Asia’s and India’s first aircraft carrier. It played a major role in liberating Goa from the Portuguese in 1961 and in the 1971 Indo-Pak war............

Bajaj V Ad Controversy: Dismantling Video Scuffle Turns Ugly

On January 27th 2016, the next day after Bajaj launched its Bajaj V ad film, IB Commercials alleged that Bajaj had neither obtained an NOC from them nor had acquired the rights of using the dismantling video footage for promoting..............

Bajaj Backing up the Claims

In reply to the allegations made by IB Commercials, Bajaj Auto issued a letter on February 10th 2016, stating that it was a ‘dishonest attempt to extract more money from the company’. The excerpts from the letter stated, “You are aware that we have purchased the scrap aluminum and iron and steel generated from the breaking of INS Vikrant for a valuable consideration from you. The sale of the scrap was unconditional and.............

Courting Trouble

The video released by Bajaj created a huge buzz among print media and social-media. “The response has been amazing. We have been receiving messages and comments from every nook and corner. Not only Indians, but when we made our friends outside India watch this video, they too appreciated the entire idea,” said Das. Industry analysts claimed...............

Assignment Questions

I. What are the various segments of the Indian automobile industry and who are the leading players? Discuss the relationship between Commoditization and Differentiation in the two-wheeler segment.II. What do you understand by brand positioning, Points of Parity and Points of Differentiation? Analyze Bajaj’s new product launch, Bajaj V from these perspectives.III. ...........

Teaching Note Preview

Bajaj V: ‘Heroic’ Bike and Unheroic Choices of Marketing?

Synopsis

Bajaj as a family has been an integral part of the independence struggle in India and the company, Bajaj Auto, made a mark for itself in the country since its inception. Though the idea of taking a patriotic route to manufacture bikes out of the scrap was considered as a good marketing idea, critics remarked that the company planned to use the scrap material to cash in profits of millions of rupees. What surprised the automobile industry analysts was commercializing the scrap bought. Was it unethical for Bajaj to use the dismantling video footage as a part of its advertisement to sell its ‘patriotic’ bikes? Should the government establish ethical and legal boundaries in marketing practices and enforce stringent rules to stop monetizing any entity of national importance? Can such negative publicity have a possible dent in Bajaj’s reputation or in its production and stable of products?

This case study presupposes an understanding of the concepts of Brand Positioning and Brand Differentiation. Accordingly, the participants were asked to read the following chapters to better connect the concepts:

Further, the participants should have a basic understanding of the Indian Automobile Industry, the two-wheeler industry segment and its respective players.

Case Positioning and Setting

This case study can be used for the following:

-In MBA Program: This case study can be used for Brand Management course and for Marketing Management course to understand the role of identifying and establishing brand positioning in enhancing brands’ equity and to understand how business processes come under attack because business situations face ethical dilemmas

-In MDPs/EDPs: This case study can also be used in Management and Executive Development Programs to examine the ethical choices of marketing and branding a patriotic product/service

Assignment Questions

I. What are the various segments of the Indian automobile industry and who are the leading players? Discuss the relationship between Commoditization and Differentiation in the two-wheeler segment.

II. What do you understand by brand positioning, Points of Parity and Points of Differentiation? Analyze Bajaj’s new product launch, Bajaj V from these perspectives.

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Case Study Analysis and Classroom Discussion

Preamble to this Case Study Analysis

This case study provides an opportunity to learn the basics of brand positioning in the light of Bajaj V. Bajaj resorted to using the scrap, bought from sale of the decommissioned aircraft carrier INS Vikrant, in manufacturing its motorcycles. The dismantling video footage of the aircraft carrier was also used in advertisements without obtaining a NOC, which provides a cue on how the choices of marketing and branding play an important role in Brand Positioning. Accordingly, this case study was discussed, [Exhibit (TN)-I]...........

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Abstract

This case study is meant to discuss the pros and cons of Bajaj Auto’s innovative practice of combining patriotism with commercialism. When Bajaj Auto purchased the scrap of India’s first aircraft carrier – INS Vikrant, industry observers wondered the logic. The astute businessman that Rajiv Bajaj has been with his omni-present ‘differentiation paradigm’, brought a fresh, yet controversial, perspective to integrating patriotism with commercialism. Though the idea of taking a patriotic route to manufacture bikes out of the scrap was considered as a good marketing idea but critics remarked that by using scrap material the company would turn it to profits of millions of rupees. What surprised the automobile industry analysts was commercializing the scrap bought. This case study enables a discussion on whether Bajaj should have resorted to using the scrap bought from sale of the decommissioned aircraft carrier, INS Vikrant in manufacturing its motorcycles and later using the dismantling video of the aircraft carrier without obtaining NOC for its advertisements. Can such negative publicity have a possible dent in Bajaj’s reputation or in its production and stable of products?

Pedagogical Objectives

To understand the industry structure and the business dynamics of the Indian automobile industry especially the two-wheeler segment

To have an overview of identifying market segments and establishing brand positioning including establishing Points of Parity and Points of Differentiation with the help of Bajaj V’s brand positioning

To examine the patriotic choices of marketing and branding and to understand how Bajaj V came under attack in the light of these guidelines

Case Positioning and Setting

This case study can be used for the following:

In MBA Program: This case study can be used for Brand Management course and for Marketing Management course to understand the role of identifying and establishing brand positioning in enhancing brand equity and to understand how business processes come under attack because business situations face ethical dilemmas

In MDPs/EDPs: This case study can also be used in Management and Executive Development Programs to examine the ethical choices of marketing and branding a patriotic product/service

ET CASES develops customized case studies for corporate organizations / government and non-government institutions. Once the query is generated, one of ET CASES’ Case Research Managers will undertake primary/secondary research and develop the case study. Please send an e-mail to info@etcases.com to place a query or get in touch with us.

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